Schedule XI

Grant of permission to operate schedule air transport services

 [See sub-rule(1) and (1A) of rule 134]

 [The whole Schedule XI was inserted by G.S.R. No. 1087 dated 19-7-1965]

 1. Air Operator Certificate to operate Scheduled air transport services in pursuance of sub rule (1) and (1A) of rule 134 (hereinafter referred to as the Air Operator Certificate) may be granted either—

(i) to a citizen of India, or

(ii) to a company or a body corporate provided that—

(a) it is registered and has its principal place of business within India;

(b) the Chairman and at least two-thirds of its Directors are citizens of India; and

(c) its substantial ownership and effective control is vested in Indian nationals.

2. The Director-General shall be the authority to examine the applications for Air Operator Certificates and for issuing cancelling or suspending such Air Operator Certificates.

3. Omitted 

4. Omitted

 

5. (1) An application for Air Operator Certificate shall be made to the Director-General, not less than six months before the date on which it is proposed to commence the air transport services, in such form and manner as may

be specified by the Director-General which shall be signed by the applicant or by a person duly authorised in that behalf by the applicant and the application.
 

(2) The applicant shall, before making the application to the Director-General, obtain a no objection certificate for his proposed air transport services from the Central Government by making an application to it in such form and

manner as may be specified by the Director-General.

 

(3) The Central Government shall consider the application for no objection certificate received under sub-paragraph (2) taking into account the factors such as the financial soundness of the applicant, his operational plan, the clearance from security angle of the applicant organisation including its Directors, and any other factor that may have a bearing on the proposed air transport services from policy angle.
 

(4) The no objection certificate granted by the Central Government shall be valid for a period of three years from the date of issue.

 

(5) A fee of two lakh rupees shall be payable for making the application for no objection certificate.

 

6. An Air Operator Certificate for air transport services under this Schedule may be granted in the following categories, namely: —
 

(a) scheduled air transport services (passenger);

(b) scheduled commuter air transport services (passenger); and
(c) scheduled Air Transport Services (Cargo).

 

Explanation. — The scheduled commuter air transport services shall be operated between airports and/or helipads as may be specified by the Director-General from time to time.
 

7. Only multi-engine aircraft with maximum certified take off mass of not less than 5700 Kilograms in case of aeroplanes and 3175 Kilograms in case of helicopters shall be used for operations by the holder of the

Air Operator Certificate under this Schedule and the aircraft shall meet the requirements as may be specified by the Director-General, from time to time:
 

Provided that the operator of scheduled commuter air transport services (passenger) may use aircraft with certified take off mass from below 5700 Kilograms but not exceeding 40000 Kilograms:

Provided further that turbine-powered single engine aeroplane having maximum certified take off mass below 5700 Kilograms and turbine-powered single engine helicopter having maximum certified take off mass below 3175 Kilograms may be used for operations under the scheduled commuter air transport services subject to the following conditions, namely: —

(i) the number of certified passenger seats shall not exceed nine;
(ii) the aeroplane shall be equipped with minimum equipment for operation at night and instrument meteorological conditions; and
(iii) the helicopter shall be flown under day Visual Flight Rules (VFR) only.

8.(1) The Director-General shall consider the application for the Air Operator Certificate as speedily as possible and upon being satisfied that the applicant meets the laid down requirements, shall grant the

Air Operator Certificate subject to such conditions as may be specified therein.

 (2) Omitted

 (3) The Director-General may, at any time, require the applicant to furnish any information which the Director-General considers necessary for deciding the application. The Director-General may also require the applicant to produce evidence in support of any information that the applicant may have furnished.

 

9. (1) The Air Operator Certificate shall be valid for a period not exceeding five years as may be specified therein and may be renewed by the Director-General for a period not exceeding five years at a time upon being satisfied that the applicant has been performing the services under the certificate satisfactorily and has the capability to continue the services.
(2) A fee of twenty lakh rupees shall be payable for the grant of an Air Operator Certificate and ten lakh rupees for renewal thereof:

 

Provided that in case of issue of an Air Operator Certificate to operate the scheduled commuter air transport service, the fee payable shall be ten lakh rupees and five lakh rupees for renewal thereof.
 

(3) The fees payable under this paragraph shall be paid in the manner as may be specified by the Director-General.

 10. The Air Operator certificate shall contain such information as prescribed by the Director-General.

 11. The grant of Air Operator Certificate shall not be construed as in any way absolving any person from the obligation of complying with the provisions of the Aircraft Act, 1934 (22 of 1934), the Carriage by Air Act, 1972 (69 of 1972) or with the rules made there under or with any other statutory provisions.

 12. Any schedule air transport service operated in accordance with this schedule shall comply with the safety requirements with respect to air routes, aircraft and aircrew specified by the Director General.

 13. Omitted

14. Omitted

15. (1) If the Director-General is satisfied that there is sufficient ground for doing so, he may, for reasons to be recorded in writing, cancel the Air Operator Certificate or suspend it for any specific period. He may also, during the investigation of any matter, suspend the Air Operator Certificate.

 (2) Without prejudice to the generality of the power in sub-paragraph (1), the Director-General may cancel or suspend the Air Operator Certificate for such period as he thinks fit, if he is satisfied—

 (a) that any of the conditions of the Air Operator Certificate has not been complied with and the failure is due to any willful act or default on the part of the holder of the Air Operator Certificate or by any of his servants, or agents, irrespective of whether or not such willful act or default of the servant or agent was with the knowledge or approval of the holder of the Air Operator Certificate; or

(b) that the holder of the Air Operator Certificate has failed to establish a safe, efficient and reliable service; or

(c) that having regard to the financial resources of the holder of the Air Operator Certificate or the losses incurred by him, he cannot be relied upon to continue the operation of the service in a safe, efficient and reliable manner; or

(d) Omitted

(e) that the air transport certificate was obtained by fraud; or

 
(f) that the security clearance of the company or the body corporate has been withdrawn or denied by the Central Government.

 (3) Before any action is taken under sub-paragraph (1) or sub-paragraph (2), the Director-General shall give to the holder of the Air Operator Certificate not less than fifteen days’ notice in writing specifying the ground or grounds upon which it is proposed to cancel or, as the case may be, suspend the Air Operator Certificate and shall give him an opportunity of showing cause either in writing or by appearing in person before the Director-General against the action proposed to be taken.

 (4) Notwithstanding anything contained in sub-paragraph (3), the Director-General, may, if he has reason to believe on reliable information that it is expedient in the interest of public safety so to do, summarily suspend the Air Operator Certificate with a view to make further enquiry and take action.

 (5) The Air Operator Certificate shall cease to be in force from the date of such cancellation or suspension unless otherwise directed.

16. The Director-General may, at any time, whether of his own motion or on application made by any party, correct clerical or typographical error in any of his orders arising from any accidental slip or omission.

17. Omitted

18. Any Air Operator Certificate granted under this Schedule shall not be capable of being transferred or assigned except with the specific permission of the Director-General :

 Provided that in the event of death, or bankruptcy of the holder of the Air Operator Certificate or of the appointment of a receiver, manager or trustee, in relation to the business of the holder, the person for the time being carrying on that business shall, if he makes an application within 14 days of the said event to the Director-General for a new Air Operator Certificate, be entitled to continue the operation of the scheduled air transport service until the application is disposed of, or unless the Director-General has directed otherwise in the interest of public convenience.

19. Omitted

20. (1) The Air Operator Certificate shall be kept at the principal office of the holder thereof and shall be produced for inspection on demand by any Magistrate, any Police Officer not below the rank of a Deputy Superintendent of Police, any officer of customs, any Gazetted officer of the Directorate General of Civil Aviation, or any other person authorised by the Central Government or the Director-General by special or general order in writing in this behalf.

 (2) A copy of the Air Operator Certificate shall be displayed at a conspicuous place in the principal traffic office of the holder of the Air Operator Certificate.

 (3) On the expiration of an Air Operator Certificate, whether by efflux of time or in consequence of a decision of the Director-General under this Schedule or when a Air Operator Certificate is suspended by the Director-General, the holder shall surrender the Air Operator Certificate to the Director-General for cancellation or endorsement as the case may be.

 21. The holder of an Air Operator Certificate shall perform such services for conveyance of mail or any other items as specified by the Director General.

 22. Every person to whom an Air Operator Certificate has been granted under this Schedule shall submit to the Director-General in such form as may be prescribed by him:—

 (a) monthly returns regarding the operation of the permitted air transport service and other air transport operations so as to reach the Director-General not later than 45 days after the expiry of the month to which the return relates;

(b) annual return showing the financial results of the services or operations during each calendar year so as to reach the Director-General not later than three months after the expiry of the year to which the return relates; and

(c) such other statements or returns as may be required by the Director-General.

 23. Any applicant or a holder of an Air Operator Certificate, aggrieved by an order of the Director-General rejecting the application, cancelling or suspending such Air Operator Certificate, as the case may be, may, within a period of thirty days from the date of such order, prefer an appeal to the Central Government and the decision of the Central Government on such appeal shall be final.

 [Amended by (i) G.S.R. No. 412 dated 15-5-3-1971,
(ii) G.S.R. No. 117(E) dated 25-2-1994,
(iii) GSR 413 dated 23-7-2001 ,
(iv) GSR No. 181(E) dated 20-03-2006,
(iv) GSR No. 813 dated 21-11-2008,

(v) GSR No. 101(E) dated 19-02-2009,

(vi)
GSR No. 32(E) dated 13-01-2015, and
(vii) GSR No. 897(E) dated 14-09-2018]